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The 132nd Board of Directors of BOAD approves new commitments amounting to 349.5 billion FCFA.

(BOAD) – The Board of Directors of the West African Development Bank (BOAD) met in person in Cotonou, Benin for its 132ndTh regular meeting chaired by Mr. Serge EKUE, Chairman of the Board, Chairman of BOAD.

After approval of the minutes from 131Th meeting held on June 14, 2022, the Board of Directors approved the project to strengthen BOAD’s equity, consisting of capital increase of approximately $900 millionUSA a issue of hybrid securities in the volume of 600 million US dollars.

In addition, the Board approved the submission of BOAD’s interim financial statements as of June 30, 2022 and BOAD’s loan recovery statement as of August 31, 2022.

Administrators also approved an emergency program for the benefit of member states and ten (10) new project financing proposals totaling FCFA 349.5 billion. These new approvals bring to CFAF 7,067.6 billion, the total commitments (all operations combined) of BOAD since the beginning of its operational activities in 1976.

a Rapid impact emergency program (SONGTAABA program[1] 2022-2024)Quantity 200 billion FCFA, aims to contribute to the improvement of the living conditions of the population in WAEMÚ and to strengthening the region’s resistance to current shocks. This will include: 1) contributing to the implementation of the National Crisis Response Plans (NRPs) and the G5 Sahel Emergency Development Program (PDU), 2) the rapid availability of resources in one or several tranches to respond to emergencies mainly related to food, re-education and basic health needs in relation to soaring product prices and uncertainty.

The approved loans concern the partial financing of the following projects:

  • Establishment and operation of an integrated cotton processing unit by Benin Textiles Company (STB) in Glo-Djigbe Industrial Zone, Benin.The project concerns the construction and operation of an integrated unit for converting cotton fibers into clothing with an annual capacity of 10,000 tons. Its implementation will make it possible to produce 19 million pieces of clothing (polo shirts and T-shirts) per year, promote the local processing of Benin cotton, create added value and jobs. Amount of the operation: 10 billion FCFA;
  • Establishment of an index mechanism for crop insurance in the Republic of Ivory Coast.This insurance mechanism will protect cotton, oil palm and rice farmers from loss of yield due to climate risks. The project also provides support and capacity building actions for the cashew and maize sector, increasing awareness among agricultural actors and stakeholders about index-based crop insurance. Amount of the operation: 10 billion FCFA;
  • Construction of the Mékhé-Ndande section of the Dakar-Tivaouane-Saint Louis highway in the Republic of Senegal. Building this 2×2 lane infrastructure with a central reservation will contribute to economic development mainly through the development of agriculture, mining, fishing and tourism in the project area.Amount of the operation: 15 billion FCFA;
  • Establishment of a unified and open Urban Video-Protection (VPU) platform in six (6) secondary cities and six (6) main stadiums in the Republic of Ivory Coast. The project will contribute to strengthening security in urban areas through the deployment of an automated and unified digital system based on video monitoring. Amount of the operation: 15 billion FCFA;
  • Transformation of the SOCOPAO wharf into an oil wharf by PETROCI Company in the Republic of Ivory Coast. The aim of the work is to guarantee the supply of oil products and mainly butane to the Ivory Coast and to ensure the safety of ships.Amount of the operation: 30 billion FCFA;
  • Modernization and expansion of SBEE networks (ProMER) in the Republic of Benin. The densification and strengthening of the high and low voltage (HV and LV) distribution networks in the regional centers of Atacora-Donga, Zou-Collines, Mono-Couffo, Borgou-Alibori and Atlantique will allow the connection of more than 16,000 additional subscribers. until 2026. The expansion will also contribute to improving the living conditions of the residents of the affected locations.Amount of the operation: 27 billion FCFA;
  • Partial guarantee of a short-term facility provided by Banque Atlantique Côte d’Ivoire (BACI) to Compagnie Ivoirienne de l’Electricité (CIE). This guarantee will enable the short-term financing of CIE’s cash flow needs to pay the bills of independent power producers (IPPs) and natural gas suppliers on time.Amount of the operation: 10 billion FCFA;
  • Construction and equipment of the Virtual University of Burkina Faso. The goal of the project is to support the quality and access to higher education offers and at the same time ensure their relevance for the socio-economic needs of the country and subregion; contribute to the integration of information and communication technologies for education in higher education and research in order to increase access and improve quality; to contribute to the improvement of the working environment and productivity of the administrative staff of the Virtual University of Burkina Faso. Amount of the operation: 7.5 billion FCFA;
  • The establishment of a refinancing line in favor of Banque de l’Union Cote d’Ivoire (BDU CI) as part of a program to revive the activities of WAEMU companies affected by the health crisis linked to COVID-19. This operation will provide the private sector, in particular micro, small and medium enterprises (MSMEs), with financing tailored to their various liquidity needs related to the COVID 19 crisis, to revive short-term activities and productive investments to strengthen or optimize. production tools in the medium term. Amount of the operation: 10 billion FCFA;
  • Establishment of a short-term line in favor of BGFIBANK Ivory Coast (BGFIBANK CI) for the partial refinancing of the cocoa campaign in Ivory Coast in 2022-2023. This line is intended to finance the collection of 28,000 tons of cocoa for export and local processing.Amount of the operation: 15 billion FCFA.

In addition, the Board approved:

  • Establishment of a fourth credit line from KfW in favor of BOAD for financing micro, small and medium enterprises (MSME) for the amount of 65.595 billion FCFA ;
  • The third reorganization of the terms of the BOAD loan for the partial financing of the project to create a telecommunications network by Alpha Telecommunications Mali SA (ATEL MALI SA) in the Republic of Mali;
  • Reorganization of the terms of the BOAD loan for the partial financing of the construction project of a four-star business hotel called “Azalaï” by Compagnie Hôtelière de la Lagune (CHL) SA in Abidjan, Ivory Coast.

At the end of the meeting, President Serge EKUE, on behalf of the board, thanked the Beninese authorities for the means used to organize this meeting in the best conditions.

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